BT has reported a £1.3 billion loss for the last three months, giving it an annual loss of £134 million.
As a result it is set to cut 5,000 jobs over the coming year, roughly 10% of its workforce. It has already axed 15,000 jobs over the past year.
The telecoms firm also revealed that the global economic downturn has created a hole in its £29 billion pension fund, the largest private sector pension scheme in the UK.
It is therefore set to increase its annual payments to £525 million over the next three years, from the current level of £280 million.
The company said it wants to cut operating costs and capital expenditure by more than £1 billion in 2009.
Ian Livingston, BT chief executive, said: “Three out of four of BT’s lines of business have performed well in spite of fierce competition and the global economic downturn.
“However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken.”
BT Global Services made an operating loss of £198m in the year to the end of March, on revenues of £2.36 billion.
Total annual revenue was up 1% at £5.47 billion in the last quarter of the year, leaving full year revenues at £21.4billion, up 3%.
